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Plant Floor Visibility

and MES Product Selection


Jan Snoeij
Principal Consultant

2008
www.mesa.org

North American Plant-to-Enterprise Conference


September 21-23, Orlando, FL

MESA Strategic Initiatives


The following Strategic Initiatives of
MESA International are associated with this
presentation:
Lean Manufacturing
Quality & Regulatory Compliance
Product Lifecycle Management (PLM)
Real-Time Enterprise
Asset Performance Management (APM)

Agenda

Introduction
Plant Floor Visibility
Trends and Observations
Improve

MES Products
Product Selection - best
practices
Conclusions

Supply Chain
Raw material
producer

Objective:
Objective:
Maximalisation
Maximalisationcustomer
customersatisfaction
satisfaction
and
andprofit
profitfor
forall
allpartners
partners
Transport
Supplier

Factory

Distributor

Factory
11
01
01
01
1

MA
TE
RI
IN
FO
R

MA
T

IO
N

FL

Retail
AL
F

OW

LO
W

Distributor

Retail
01
10
10
10

Consumer

Rapid changes,
complex environment

Lowering consumer brand loyalty


Increased price pressure
Consolidated retail power
Private label producers

Regulatory requirements
General Food Law
Sarbanes-Oxley

Shorter product life cycles


Product innovation required

Globalization
Branding
Make or buy?
Where to produce?

Supply Chain Challenges

Raw Material
Supplier

Transport
Supplier

MA
TE
RI
AL
F
MA
TIO
N

Remove supply chain inefficiencies

Lower inventory to reduce holding


costs

Reduce transportation and order


management costs

Reduce order fulfillment lifecycle

Management of inventory
replenishment process

Retail & regulatory mandates

Track-and-trace applications force


supply chain optimization

Distributor
LO
W

Retail
FL
OW

Distributor
Retail

NF
OR

Reduce product stock-outs

Plant

Plant

11
01
01
01
1I

00
11
01
01
0

Consumer

Plant Performance is Key

Increased
Increased "agility"
"agility"
(product
(product availability)
availability)

Delivery
Delivery to
to schedule
schedule

Source:
Source: AMR
AMR Research
Research

Produce
Produce to
to schedule
schedule

Plant is no longer "black box"


Need for full horizontal integration!

ERP

Logistics and manufacturing information


Financial and product(ion) information

Transparency and visibility


Streamlined business processes and workflows
Implies highly integrated information systems,
with rapid flows of accurate data

Need for full vertical integration!

MES

Production processes must be aligned with


the external supply chain in order to enable
higher speed, better quality and more agility

Agenda

Introduction
Plant Floor Visibility
Trends and Observations
Improve

MES Products
Product Selection - best
practices
Conclusions

Improve
Focus, make choices
Consistent strategy and execution
business processes
organisation & people
tools
Business
processes

Strategic assets:
production and supply chain(s)

Organization
People

Enterprise
objectives

logistics and procurement programmes


inventory cycles
maintenance
personnel and organisation

Tools
incl. IT

SMART Objectives
Specific
What exactly are we going to do?

Measurable
How much are we going to do?
'This is the last strategy of our management !'

Acceptable
Is there support for what we want to do?

Realistic
Is it feasible what we want?

Timing
When will we be ready?
It is not a perfect strategy, but we apply it until we
know something better !'

Best in Class Strategic Actions


Improve
Improve processes
processes that
that manage
manage
the
the material
material and
and information
information flows
flows

64%
64%

Lean
Lean initiatieves
initiatieves

61%
61%

Drive
Drive standards
standards and
and consistency
consistency across
across
global
global manufacturing
manufacturing networks
networks

43%
43%

Optimize
Optimize performance
performance at
at
individual
individual plants
plants and
and factories
factories

43%
43%

Improve
Improve Sales
Sales && Operations
Operations
planning
planning process
process

0%
0%
Source:
Source: Aberdeen
Aberdeen Group
Group

32%
32%
10%
10%

20%
20%

30%
30%

40%
40%

50%
50%

60%
60%

70%
70%

Top approaches within the


plant (best in class)
Standardizing
Standardizing plant
plant and
and factory
factory
applications
and
control
systems
applications and control systems

46%
46%

Building
Building flexibility
flexibility into
into manufacturing
manufacturing
and
and supply
supply chain
chain processes
processes

43%
43%

Integrating
Integrating systems
systems into
into common
common
factory
floor
information
platform
factory floor information platform

36%
36%

Deploying
Deploying real-time
real-time information
information
to
to decision-makers
decision-makers

36%
36%

Consolidating
Consolidating the
the management
management and
and
reporting
of
manufacturing
information
reporting of manufacturing information

0%
0%
Source:
Source: Aberdeen
Aberdeen Group
Group

29%
29%

10%
10%

20%
20%

30%
30%

40%
40%

50%
50%

Internal IT Challenges

Gap
Gap between
between ERP
ERP and
and
factory
factory floor
floor

52%
52%

Incompatible
Incompatible and
and
inconsistent
systems
inconsistent systems

41%
41%

Lack
Lack of
of timely
timely
information
information to
to make
make
informed
informed decisions
decisions

37%
37%

Lack
Lack of
of strategy
strategy to
to unify
unify
information
across
information across
manufacturing
manufacturing

33%
33%

Lack
Lack of
of funds
funds and/or
and/or lack
lack
of
of perceived
perceived value
value

0%
0%
Source:
Source: MESA
MESA International
International

27%
27%

10%
10%

20%
20%

30%
30%

40%
40%

50%
50%

60%
60%

Integration and standardisation


Prerequisites (ROI)
Efficient and effective
Compliant to law and regulations
Flexible, agile

Full integration of plant and enterprise

Processes
Organization
Applications
Data
Technical infrastructure

Production
Production
Maintenance
Maintenance
Quality
Quality
Inventory
Inventory

Latency
between business metrics and operations that caused them
100%
90%
80%
70%

Annually

60%

Quarterly

50%

Monthly

40%

Weekly
< 24 hours

30%
20%
10%
0%
Source:
Source: MESA
MESA International
International

Business Movers

Others

Example: Quality

Example: Quality (2)


ON
TI
AC

10

10

Agenda

Introduction
Plant Floor Visibility
Trends and Observations
Improve

MES Products
Product Selection - best
practices
Conclusions

Participants 2008

Some Vendor Facts


Origin
North & South America
Europe
Asia & Australia

2004

2006

2008

55%
42%
3%

47%
46%
9%

36%
51%
13%

48%
17%
35%

45%
18%
37%

40%
22%
38%

64%

65%

55%

Size (employees)
More than 150
Between 50 and 150
Less than 50

Established
Before 1990

Questionnaire

Vendor information

General

Improvements

Interfaces

Implementation and Deployment

MESA compliance

ANSI/ISA-95 compliance

Technical aspects

Mobile solutions

Mining
Mining

Building&&Infra
Infra
Building

Utilitiesand
andPublic
Public
Utilities
Sector
Sector

Oil&&Gas
Gas
Oil

Petrochemical
Petrochemical

Press&&Printing
Printing
Press

Home&&Pers.Care
Pers.Care
Home

BulkChemicals
Chemicals
Bulk

MedicalDevices
Devices
Medical

LifeSciences
Sciences
Life

Paper&&Pulp
Pulp
Paper

Cons.Packed
Cons.Packed
Goods
Goods

FineChemicals
Chemicals
Fine

HeavyMetals
Metals
Heavy

Aerospace&&
Aerospace
Defense
Defense

Plastics&&Rubber
Rubber
Plastics

Semiconductors
Semiconductors

Machinery&&Tool
Tool
Machinery

Pharmaceutical
Pharmaceutical

Food&&Bev.
Bev.
Food

Automotive
Automotive

Electronics
Electronics

Products per Industry Sector

70%
70%

60%
60%

50%
50%

40%
40%

30%
30%

20%
20%

10%
10%

0%
0%

ProficyPlant
PlantApps.
Apps.
Proficy
Wonderware
MES&EMI
Wonderware MES&EMI
aspenONE
aspenONE
PISystem
System
PI
Shopfloor-Online
Shopfloor-Online
Qubes
Qubes
Business FLEX
FLEX
Business
SIMATICIT
IT
SIMATIC
FlexNet
FlexNet
Quartis
Quartis
MWare
MWare
YokogawaMIPP
MIPP
Yokogawa
ADICOM
Suite
ADICOM Suite
Dabom-iVisualizer
Dabom-iVisualizer
FactoryTalk
FactoryTalk
Easy95
Easy95
GlobalSCREEN
GlobalSCREEN
HydraMES
MES
Hydra
iTACMES
MESSuite
Suite
iTAC
MESplus
MESplus
PMPMS
PMS
PM
PRODAC
PRODAC
Objective
Objective
XSSuite
Suite
XS
EmersonCS/AMS
CS/AMS
Emerson
Producim/Pharmacim
Producim/Pharmacim
InQuMES
MES
InQu
Mestec
MES
Mestec MES
R2E-MES
R2E-MES
UnisoftCELLS
CELLS
Unisoft
Camstar
Mnfg.
Camstar Mnfg.
nanoTrack
nanoTrack
SAP-VisipriseMnfg.
Mnfg.
SAP-Visiprise
AegisFusion
Fusion
Aegis
Ampla
Ampla
D2000Entis
Entis
D2000
PAS-X
PAS-X
PVSS
PVSS
HAI*QPM
HAI*QPM
MEScontrol.net
MEScontrol.net
nMetricSuite
Suite
nMetric
Pertinence
Suite
Pertinence Suite
PlantiT
iT
Plant
Proficy
Tracker
Proficy Tracker
Solumina
Solumina
SYPROS
SYPROS
ActiveAccurate
Accurate
Active
EyelitMES/QMS
MES/QMS
Eyelit
intraFACTORY
intraFACTORY
WIPtrac
WIPtrac
XFP
XFP
4P
MES
4P MES
BronerMES
MES
Broner
PSImetals
PSImetals
QMOS
QMOS
Operator
Operator

Focused Industry Sectors


per Vendor
Little Focus
High Focus

20
20

15
15

10
10

55

00

Production & Logistical


Typologies
100%
100%

2002
2002
90%
90%
75%
75%

80%
80%

79%
79%

2005
2005

79%
79%

2008
2008

66%
66%

70%
70%
60%
60%
50%
50%

50%
50%

48%
48%
38%
38%

40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
Continuous
Continuous
Process
Process

Batch
Batch// Semi
Semi
Process
Process

Discrete
Discrete

Make
Maketo
to Stock
Stock

Make
Maketo
to Order
Order

Engineer
Engineerto
to
Order
Order

Assemble
Assembleto
to
Order
Order

Helpdesk and Support

100%
100%

Helpdesk
Helpdesk++Support
Support
Helpdesk
Helpdeskonly
only

80%
80%

Support
Supportonly
only
None
None

60%
60%
40%
40%
20%
20%
0%
0%
N.
N.America
America

S.
S.America
America

Europe
Europe

M.
M.East
East && Africa
Africa Asia
AsiaPacific
Pacific

Performance
ormance
Perf
Analysis
Analysis

Product
Product
Tracking &&
Tracking
Genealogy
Genealogy

Maintenance
Maintenance
Management
Management

Process
Process
Management
Management

Quality
Quality
Management
Management

Labor
Labor
Management
Management

DataCollection
Collection//
Data
Acquisition
Acquisition

Document
Document
Control
Control

Dispatching
Dispatching
ProductionUnits
Units
Production

Operations //
Operations
Detail
Detail
Scheduling
Scheduling

Resource
Resource
Allocation&&
Allocation
Status
Status

Support MESA-11 functions

66

80
80-- 100%
100%

55

60
60-- 80%
80%

44

40
40-- 60%
60%

33

20
20-- 40%
40%

22

00-- 20%
20%

11
2001
2001

2008
2008

ANSI/ISA-95 Functional
Model
Order
Order
Processing
Processing
(1.0)
(1.0)

Production
Production
Scheduling
Scheduling
(2.0)
(2.0)

Material
Materialand
and
Energy
EnergyControl
Control
(4.0)
(4.0)

INVENTORY
INVENTORY
OPERATIONS
OPERATIONS
MANAGEMENT
MANAGEMENT
Procurement
Procurement
(5.0)
(5.0)

Source: ANSI/ISA-95

PRODUCTION
PRODUCTION
OPERATIONS
OPERATIONS
MANAGEMENT
MANAGEMENT
Production
Production
Control
Control
(3.0)
(3.0)

MAINTENANCE
MAINTENANCE
OPERATIONS
OPERATIONS
MANAGEMENT
MANAGEMENT

Product
ProductCost
Cost
Accounting
Accounting
(8.0)
(8.0)

Product
Product
Shipping
ShippingAdmin
Admin
(9.0)
(9.0)

INVENTORY
INVENTORY
OPERATIONS
OPERATIONS
Product
MANAGEMENT
MANAGEMENTProduct

Inventory
Inventory
Control(7.0)
Control(7.0)

QUALITY
QUALITY
OPERATIONS
OPERATIONS
MANAGEMENT
MANAGEMENT
Quality
Quality
Assurance
Assurance
(6.0)
(6.0)

Maintenance
Maintenance
Management
Management
(10.0)
(10.0)
Research
Research
Development
Development
&&Engineering
Engineering

Marketing
Marketing
&&Sales
Sales

Support ISA-95 Activities


Standard
Standard ++ Configurable
Configurable

100%
100%

Production
Production

90%
90%

Maintenance
Maintenance

80%
80%

Quality
Quality
Inventory
Inventory

70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%

Analysis
Analysis

Tracking
Tracking

DataCollection
Collection
Data

Execution
Execution

Dispatching
Dispatching

Detailed
Detailed
Scheduling
Scheduling

Resource Mngt
Mngt
Resource

Definition
initionMngt
Mngt
Def

0%
0%

Support and No Support


Standard
Standard++Configurable
Configurable
100%
100%
2006
2006

82%
82%
80%
80%

2007
2007

64%
64%
60%
60%

59%
59%

52%
52%

2008
2008

Best supported Production


activities.
Support for the other activities
increased more!

40%
40%
20%
20%

No
Nosupport
support
100%
100%

0%
0%
Production
Production

Maintenance
Maintenance

Quality
Quality

2006
2006

Inventory
Inventory

80%
80%

2007
2007
2008
2008

60%
60%

Consider Best-of-Breed
for Maintenance, Quality
and Inventory ?

33%
33%

33%
33%

40%
40%

24%
24%
20%
20%

10%
10%

0%
0%
Production
Production

Maintenance
Maintenance

Quality
Quality

Inventory
Inventory

0%
0%
Operations//Detail
Detail
Operations
Scheduling
Scheduling

ResourceAllocation
Allocation
Resource
&Status
Status
&

60%
60%

46%
46%

40%
40%

20%
20%

0%
0%
2004
2004
53%
53%

2005
2005
65%
65%

2006
2006
62%
62%

2007
2007
2008
2008
68%
68%

Expected
Expected
2009
2009

60%

40%

20%

53%

46%

0%
2004
2005

80%

2006

Performance
Performance
Analysis
Analysis

ProductTracking
Tracking&
&
Product
Genealogy
Genealogy

73%
73%

Maintenance
Maintenance
Management
Management

100%
100%

Process
Process
Management
Management

80%
80%

QualityManagement
Management
Quality

10%
10%

LaborManagement
Management
Labor

DataCollection
Collection//
Data
Acquisition
Acquisition

DocumentControl
Control
Document

20%
20%

Dispatching
Dispatching
ProductionUnits
Units
Production

Mobile Solutions per MESA-11

100%
100%

90%
90%

80%
80%

70%
70%
2004
2004
2005
2005
2006
2006
2007
2007
2008
2008
Exp.2009
Exp.2009

60%
60%

50%
50%

40%
40%

30%
30%

100%
73%

2007

76%
78%

65%

2008* Exp.2009*

Internal Quality System


100%
100%

2003
2003
2004
2004
2005
2005
2006
2006
2007
2007
2008
2008

90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
ISO
ISO or
or CMM
CMM

Own
Own Quality
Quality System
System ISO,
ISO, CMM
CMM or
or Own
Own

Certified
Certifiedor
or
Assessed
Assessed

Valid
ValidCertificate
Certificate

Regulatory
100%
100%

2002
2002

90%
90%

2005
2005
2008
2008

80%
80%
70%
70%

70%
70%
63%
63%
57%
57%

60%
60%

50%
50%

50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
deployed
deployed FDA
FDA

developed
developed GAMP
GAMP

21
21 CFR
CFR Part
Part 11
11
Compliant
Compliant

Validation
ValidationDossier
Dossier

85%
85%

SOA
SOA

84%
84%

Web based
based
Web
architecture*
architecture*

Thin Client
Client
Thin

80%
80%

DNA
DNA

Distributed
Distributed
Architecture
Architecture

Load
Load
Balancing
Balancing

Client/Server
Client/Server

Architecture

100%
100%
85%
85%

80%
80%
62%
62%
67%
67%

60%
60%

40%
40%
22%
22%

20%
20%

0%
0%
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
2007
2007
2008
2008

Agenda

Introduction
Plant Floor Visibility
Trends and Observations
Improve

MES Products
Product Selection - best
practices
Conclusions

Staged Approach

Training & Documentation


Technology & Architecture
Validation Processes & Systems

Change Management
Awareness

Specification
&
Feasibility
Selection

Realization

Maintenance
&
Support

Im
pa
ct

Project Management

Time

Specification and selection


User Requirement Specification
Technical infrastructure
Vendor information (RFI)
Product and tool selection

Awareness

Specification
&
Feasibility
Selection

Selection process
Objectives: acceptance and active
participation of all involved
Convinced of:

Long List

selection of "sufficiently good" MES


product
transparency and validity of the
selection process itself

Phase 1
Short List
Phase 2
Final Selection

Phases
1. Determine shortlist
2. Find the champion!

Determine shortlist

Organization

Focus
&
Scoping

Involvement
Management
"Process owners", key users
ICT department
Technical department,
engineering

Knock Out
&
Other Criteria

Organization
Small steering group
(Bigger) selection
group

Get Info
&
Evaluate

Short
Short
List
List

Determine shortlist (2)

Organization

Focus
&
Scoping

Knock Out
&
Other Criteria

Focus and scope


Company operating policy
Consistent and focused requirements

Get Info
&
Evaluate

Short
Short
List
List

Determine shortlist (3)

Organization

Focus
&
Scoping

Knock Out
&
Other Criteria

Get Info
&
Evaluate

Knock-out criteria (according to end users)


Proven focus and experience of
the vendor
production typology
industrial sector

Availability of support
Suitability of MES product

Support by product of
relevant main functions
specific processes/activities

Preconfigured solutions
Regulatory compliance
Quality system vendor

Short
Short
List
List

Determine shortlist (3)

Organization

Focus
&
Scoping

Knock Out
&
Other Criteria

Information and evaluation


Conferences, seminars, fairs
Literature
Associations, market organizations, e.g. MESA
Colleagues
Internet
Report "MES Product Survey"

Get Info
&
Evaluate

Short
Short
List
List

Find the champion!

Prepare
Requirements
Document

Vendor
Meetings

Final
Evaluation:
Selection

MES
MES
Product
Product

Requirements document
Objectives for MES implementation
Business processes within scope
Required functionality
Interfaces with other systems
Few relevant (open) questions
Specific test case (small)

How does the


vendor commit to
your success!

"Open" Questions

How does the vendor propose to support your business


processes with his product in order to achieve the objectives?
What methodology does the vendor use for executing the
project successfully?
What software modules does the vendor propose to use? What
infrastructure and hardware will be needed? How will the
interfaces with other systems be realized?
What is a realistic plan and are there specific issues to take
into account, e.g. availability of manufacturers employees?
What are the cost estimates for the implementation with (at
least) a breakdown of hardware, software licenses and
services?
What is the vendors vision and policy towards future
developments, both functionally and technically?

Find the champion!

Prepare
Requirements
Document

Vendor
Meetings

Final
Evaluation:
Selection

Meeting with Vendor


Does the vendor understand your needs
Is the vendor (or integrator) capable to implement succesfully?
Viability of the partnership
vision, cooperation, financial

Roles and responsibilities


Who is involved directly - organizations and individuals
Reference visits

MES
MES
Product
Product

Find the champion!

Prepare
Requirements
Document

Vendor
Meetings

Final choice (ranking)


Functional:
does the MES product fit to demands?

Technical:
sufficiently reliable
does it fit to company's strategy and policies

Financial
Cultural

Final
Evaluation:
Selection

MES
MES
Product
Product

Agenda

Introduction
Plant Floor Visibility
Trends and Observations
Improve

MES Products
Product Selection - best
practices
Conclusions

The difference ...


Black-box versus "glass" factory

High feedback speed


Clear link between corporate strategy and
manufacturing activities
Knowing the metrics
Focus at important aspects
Use of appropriate tools (MES, dashboards, ...)

Plant floor visibility

Delivers by far more improvement and profit / ROI


Separates the winners from the rest!

Closing remarks
"No idea!" - deadly answer?
Companies knowing their
shortcomings best, improve most!
Metrics matter!
Technology is enabler
It is all about people !

Want to know more ...

Ask now or later:


in our booth
www.mescc.com
jan.snoeij@logica.com

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